Kenya has strongly urged Tanzania to cancel new taxes and restrictions that block Kenyans from doing business in the country, calling these actions unfair and discriminatory.
In a bold statement on Wednesday, Kenya’s Trade Cabinet Secretary Lee Kinyanjui criticized Tanzania’s newly introduced excise duties and the industrial development levy.
He also raised concerns about new rules that stop foreigners, including Kenyans, from participating in certain small and medium-sized businesses.
“These restrictions are not just damaging to Kenya’s economy but will also negatively affect Tanzania’s economic progress,” CS Kinyanjui stated.
He called on Tanzania to remove these measures and return to the rules agreed upon in the East African Community (EAC) protocol. “The new Business Licensing Order appears to block legitimate investments from EAC member states.
This will only harm both our countries economically. It’s very important that, in the spirit of the EAC, both nations sit down and resolve these matters through dialogue,” the CS added.
Tanzania’s Minister for Industry and Trade, Selemani Saidi Jafo, on Tuesday announced that the country had banned foreigners from running 15 different types of small- and medium-sized businesses.
Tanzania also passed the Finance Act of 2025 and amended its Excise (Management and Tariff) Act of 2019. These new changes introduced a 10% excise duty and a 15% industrial development levy on certain goods and services.
CS Kinyanjui said these new laws go against the very goals of the EAC’s Common Market Protocol (CMP), which was created to support regional economic cooperation and unity.
He pointed out that Kenya’s Ministry of Investments, Trade and Industry (MITI) has already been involved in ongoing talks to make sure trade rules across East Africa follow the EAC Customs Union Protocol.
Tanzania’s latest move has caused concern among Kenyan small business operators. Many Kenyans, including local leaders, have asked President William Ruto to fight back by imposing similar restrictions on Tanzanian businesses operating in Kenya.
Nandi Senator Samson Cherargei openly called for retaliation. “The government of Kenya must act by banning Tanzanian businesses here, even street beggars from Tanzania who roam around our towns and cities,” he said.
However, CS Kinyanjui made it clear that although Kenya does not want to respond with immediate retaliation, it will consider that option if Tanzania refuses to cooperate during upcoming negotiations.
He revealed that both countries have scheduled several meetings to address the issue. “There’s a technical meeting about the tobacco trade happening on August 4 and 5 in Arusha. We also have a Joint Trade Committee meeting set for August 11 and 12 to review various levies, fees, and charges,” the CS stated.
Among the business activities now banned for foreigners in Tanzania are:
- Postal and parcel delivery services
- Tour guiding services
- Setting up and running radio and television stations
- Managing museums and curio shops
- Acting as brokers in business and real estate
- Clearing and forwarding services
Kenya hopes to resolve the issue peacefully through EAC talks, but is keeping all options open if Tanzania refuses to reverse its new rules.
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